From a global perspective, we believe infrastructure could be on the brink of transformation, fueled by seismic shifts in energy, technology, and policy. From the race to modernize power grids and digital networks to the drive for resilient, sustainable cities, infrastructure investment may have the potential to redefine how the world connects, builds, and grows.
OUR TOP CATALYSTS FOR CHANGE
01 Power Shift Ahead
Our research shows that governments and companies are accelerating investment in renewable energy, battery storage, carbon capture, and grid upgrades to meet decarbonization goals. In response to rising electricity demand from electrification and artificial intelligence-driven data centers, utilities and infrastructure providers are expanding and modernizing networks. These long-dated projects could anchor multi-year growth in energy-linked infrastructure assets.
02 The Great Re-Route?
Manufacturing is shifting closer to end markets as companies and governments emphasize security, reliability, and strategic independence. New industrial corridors, logistics hubs, ports, and power infrastructure will likely be needed to support reshoring and near-shoring efforts. This theme connects directly to policy incentives, regional development, and private-public partnerships that may help drive physical-asset buildouts..
03 The Grid Meets Artificial Intelligence1
We see explosive growth in artificial intelligence (AI) computing and cloud services fueling demand for data centers, high-capacity fiber, and stable power supply. The resulting build-out could potentially require large investment in both digital and physical infrastructure. This convergence of technology and utilities is emerging as one of the fastest growing infrastructure trends globally.
04 Emerging Urbanization
Rapid population growth and urban expansion in emerging markets are creating vast needs for transport, water, sanitation, healthcare, and housing infrastructure. Development banks and sovereign investors are increasingly channeling capital into these regions. Addressing this infrastructure gap could provide higher-growth opportunities to manage geopolitical and regulatory complexity.
05 Policy Push
Public-sector spending and regulatory frameworks remain critical enablers of infrastructure investment. Governments across developed and emerging markets are expanding stimulus programs, streamlining permitting, and launching co-investment funds to attract private capital. We believe fiscal policy continuity—especially in the U.S., Europe, and Asia—could provide a powerful catalyst for potential large-scale infrastructure deployment in 2026.
06 Strong by Design
As extreme weather and environmental risks appear to rise, we believe nations are focusing on infrastructure resilience—reinforcing grids, transportation networks, and coastal defenses. Investments in adaptation, such as flood control and wildfire prevention, are seeing increased interest. These projects not only may help mitigate environmental risk but also have the potential to open new investment avenues in materials, engineering, and sustainable design.
This article is part of our 2026 Outlook series where our financial experts answer 6 key questions facing investors. Read our main Outlook here.
Endnotes
1The strategy discussed does not specifically include an Artificial Intelligence (AI) driven objective. The manager may evaluate a range of factors when evaluating investments, however, including how companies utilize artificial intelligence within their business operations and strategies. AI usage may not be considered for each individual investment and, where it is considered, other attributes of an investment may outweigh any AI usage considerations when making investment decisions. The way that AI usage considerations are assessed may vary depending on the asset class and strategy involved.
All investments involve risk including loss of principal. Certain investments involve greater or unique risks that should be considered along with the objectives, fees, and expenses before investing.
Past performance is no guarantee of future results.
Important Information
For sole and exclusive use by Institutional Investors, Accredited Investors and Professional Investors only. Not for further distribution. This is a financial promotion and is not investment advice. Any views and opinions are those of the investment manager, unless otherwise noted. The value of investment can fall. Investors may not get back the amount invested. BNY, BNY Mellon and Bank of New York Mellon are the corporate brands of The Bank of New York Mellon Corporation and may also be used to reference the corporation as a whole and/or its various subsidiaries generally. BNY Investments encompass BNY Mellon’s affiliated investment management firms and global distribution companies. Any BNY entities mentioned are ultimately owned by The Bank of New York Mellon Corporation. In Hong Kong, the issuer of this document is BNY Mellon Investment Management Hong Kong Limited, which is registered with the Securities and Futures Commission (Central Entity Number: AQI762). In Singapore, this document is issued by BNY Mellon Investment Management Singapore Pte. Limited, Co. Reg. 201230427E. Regulated by the Monetary Authority of Singapore (MAS). This advertisement has not been reviewed by the Monetary Authority of Singapore.
MC686-12-01-2026 (6M)
